What is “natural” about the natural rate of unemployment? Explain why the natural rate of unemployment might differ across countries.
1) Explain the relationship among savings, investment, and net capital outflow. 2) Describe the economic logic behind the theory of purchasing-power parity (PPP). What factors might prevent PPP from holding true? 3) Describe supply and demand in the market for loanable funds and the market for foreign currency exchange. How are these markets linked? 4) […]
